Directions: Insert a "T" for True or "F" for False beside the corresponding number

1. Rescission terminates a contract, returning the parties to where they were prior to entering into the contract.

2. The Restatement of the Law of Contracts is the ultimate binding law/legal authority in the field of contract law and not primarily a guide for judges and lawyers to refer to when dealing with a contractual dispute.

3. Gift promises are enforceable contracts even though they lack consideration.

4. The attorney that you work for can pay you by splitting fees with you - based on the outcome of a case, the profits of the firm, or as a percentage of a particular legal fee.

5. If there is ambiguity as to the language of an offeror's promise, the contract should be assumed to be a unilateral contract.

6. Tiny points his loaded gun at Bob's daughter, Bab. "Mow my grass by 6pm on Friday or it's curtains for your daughter!" Bob, knowing the gun is loaded and that Tiny is not afraid to use it, assents. However, Bob does not show up and mow the grass by 6pm on Friday. If Tiny sues Bob for breach of contract, the court will more than likely find that a valid contract existed since Bob assented and that he must mow Tiny's grass immediately.

7. Past consideration will not support a new contract.

8. Both courts of equity and courts of law can enforce a contract.

9. Parents have a legal duty to provide their minor children with the necessaries of life, like food, shelter, clothing, etc.

10. John Q. Reasonable, the in-the-flesh human being that the "Reasonable Person Standard" is modeled after, was the embodiment of human ethics, morality, and virtue.

11. Historically, it has been legal in South Carolina for an attorney to be paid by his or her client by having them execute a mortgage on their property, whereby the attorney would then have a lien on their client's property. This would allow the client to pay his or her lawyer the money that is owed over time as some cases are very costly. The concern over undue influence is overcome, if pressed, when the attorney demonstrates that he or she would have not otherwise been paid, that his or her client was aware of this fee agreement through an in-writing signed statement, that the client would have otherwise had to borrow money from the black market or have to go with an over-burdened public defender, etc.

12. Bob sells Tiny his lawn care business as Bob is moving from Columbia, South Carolina to Columbia, Oregon. Bob only has 4 clients and all of their lawns are in South Carolina. 2 Nevertheless, Tiny insists that a clause not to compete be inserted into their contract, preventing Bob from opening a lawn care business in the entire United States of America for 27 years. A court of law or equity is likely to uphold this clause and find for Tiny when Bob moves to Columbia, Oregon and opens a lawn care business after just 22 years.

13. An express contract can be oral and not just in writing.

14. A void contract is considered 'super-enforceable' and has more legal effect than all those other wimpy types of contracts.

15. Refraining from engaging in certain legal behaviors for a specified period of time may constitute adequate consideration.

16. Silence is typically an adequate form of acceptance for a bilateral contract.

17. When talking about the intent to deceive as an element of proving fraud, the term "scienter", which means 'dirty heart', must be demonstrated to show that the party accused of fraud has or had unclean or immoral thoughts about the party that is claiming to be defrauded.

18. Bob agrees to sell Tiny a kilo of crack cocaine for the going black-market street value. At the agreed upon time, both Bob and Tiny appear at the agreed upon location. Tiny produces the money but Bob does not produce 'the stuff'. Tiny can enforce his right to have Bob specifically perform his obligation under their contract in a court of law or equity since crack cocaine is a unique commodity.

19. Under the doctrine of respondeat superior, the actions of a paralegal are imputed to their supervising attorney.

20. A counteroffer constitutes both acceptance of the offeror's offer by the offeree and creates a new offer.

21. If the consideration of an agreement "shocks the conscience" of a court hearing a contractual dispute then it is reasonable to assume that the court has found said consideration inadequate.

22. A quasi-contract is a mechanism utilized by courts to avoid unjust enrichment, even in instances where no contract ever existed.

23. The subjective intent of the parties always trumps the objective intent as construed by the judge when courts of law or equity are presiding over contract disputes.

24. An exculpatory clause does not relieve one (or both) parties from tort liability for ordinary negligence.

25. American common law evolved from a mixture of French and German common law. 3

26. Pro bono is Latin for "for massive bonuses", which translates in modern English to mean that professionals, such as lawyers, are money-hungry snakes and never work for free, to give back to the less fortunate or out of the kindness of their heart.

27. Bob and Tiny decide to take turns chugging a bottle of tequila. Bob drinks so much that he blacks out. He falls to the ground and, before he passes out, he declares, "I'll sell you my new lawnmower for $2." Tiny responds by exclaiming, "sold!" The next morning Tiny gives Bob $2 and demands Bob produce the lawnmower. Bob, not remembering his offer, tells Tiny "out of my cold, dead hands will I part with my new lawnmower for $2!" Tiny brings an action for specific performance or the market value of the new lawnmower in a court of law. The court will declare any contract formed as voidable since Bob was intoxicated when he made the offer to Tiny.

28. A licensing statute is a law that forces lawyers, doctors, hairdressers, etc., to have a license.

29. Tiny's cousin, Teeny, sold him a painting for $1m that Teeny claimed to be an original Jackson Pollock piece of art. In reality, Teeny's 5-year old daughter, Weeny, painted the piece in her kindergarten's art class. Tiny, thinking he could make some quick money, then sold the painting to Bob for $17.4m. Thereafter, Bob got the painting appraised and was informed that its actual value was around $.62. In his lawsuit against Tiny, Bob may collect punitive damages even though Tiny honestly thought the painting was an original Jackson Pollock.

30. As long as an informal contract is valid, it is enforceable